UN report: True cost of natural disasters hits £1.9 trillion
A new UN report reveals that the true costs of natural disasters are ten times higher than previously estimated. Annually, they reach as much as £1.9 trillion, posing a significant challenge for the global economy.
Key information
- The actual costs of natural disasters amount to £1.9 trillion annually.
- The UN warns of the growing impact of the climate crisis.
- North America suffered the most financial losses in 2023.
According to the latest UN report on disaster risk reduction (UNDRR), the true costs of natural disasters worldwide are significantly higher than previously thought. Annually they reach as much as £1.9 trillion, which is over ten times previous estimates.
The UN Secretary-General, António Guterres, warns that these costs will increase as the climate crisis deepens. Natural disasters not only destroy infrastructure but also affect health systems, education, and employment, hindering development and increasing national debt.
Previous estimates indicated losses of around £160 billion annually, which according to UNDRR is only a fraction of the actual costs. Jenty Kirsch-Wood from UNDRR emphasises that the world chronically underestimates the impact of disasters on sustainable development.
According to UN data, a person born in 1990 has a 63% chance of experiencing a catastrophic flood, while for a child born in 2025, this probability rises to 86%.
Displacements and financial losses
Between 2014 and 2023, natural disasters forced the displacement of almost 240 million people, with the most in China and the Philippines. In 2023, North America suffered the largest financial losses, amounting to £58 billion.
Kirsch-Wood notes that most damages can be prevented through better adaptation of financial systems and effective use of public and private investments. This is key to reducing the impact of disasters on the global economy.
